Bill Text: NY A07738 | 2019-2020 | General Assembly | Introduced


Bill Title: Requires governor to perform a cost benefit analysis of tax expenditures.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2019-05-17 - referred to governmental operations [A07738 Detail]

Download: New_York-2019-A07738-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          7738

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                      May 17, 2019
                                       ___________

        Introduced by M. of A. KIM -- read once and referred to the Committee on
          Governmental Operations

        AN  ACT to amend the executive law, in relation to cost benefit analysis
          of tax expenditures

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subdivision  1  of  section  181  of the executive law is
     2  amended by adding three new paragraphs (c),  (d)  and  (e)  to  read  as
     3  follows:
     4    (c)  "Cost  benefit analysis" shall mean, for tax expenditures claimed
     5  by taxpayers subject to articles nine (other than  section  one  hundred
     6  eighty),  nine-A, thirteen-A, twenty-eight, thirty-two, and thirty-three
     7  of the tax law, a method of determining a tax expenditure's  benefit  to
     8  New  York  state  based on the tax expenditure recipient's projected job
     9  creation or job retention and/or investment  in  the  state  versus  the
    10  total  amount  of  revenues  foregone under the tax expenditure. For tax
    11  expenditures claimed by taxpayers subject  to  articles  twenty-two  and
    12  thirty-one  of  the tax law, "cost benefit analysis" shall mean a method
    13  of determining a tax expenditure's benefit to New York  state  based  on
    14  the amount of tax relief a tax expenditure provides to particular class-
    15  es of persons or entities.
    16    (d) "Cost benefit analysis ratio" shall mean the ratio calculated by a
    17  cost benefit analysis of a tax expenditure.
    18    (e)  "Cost  benefit analysis target ratio" shall mean the cost benefit
    19  analysis ratio level that the governor deems to reflect a  tax  expendi-
    20  ture's  adequate  level  of  benefit  to New York state when taking into
    21  consideration the amount of revenues the state foregoes because of a tax
    22  expenditure and the  amount  of  tax  relief  or  job  creation  or  job
    23  retention  or  investment  in  the  state provided or support by the tax
    24  expenditure.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08609-01-9

        A. 7738                             2

     1    § 2. Paragraphs (f) and (g) of subdivision 2 of  section  181  of  the
     2  executive  law,  as added by chapter 23 of the laws of 1990, are amended
     3  and five new paragraphs (h), (i), (j), (k) and (l) are added to read  as
     4  follows:
     5    (f)  comment, if any, on the effectiveness and efficiency of other tax
     6  expenditures; [and]
     7    (g) general cautionary and advisory notes  concerning  limitations  of
     8  data,  estimation procedures, sampling errors and imputed values, promi-
     9  nently displayed[.]; and
    10    (h) a cost benefit analysis of each tax expenditure;
    11    (i) a comparison between each tax expenditure's cost benefit  analysis
    12  ratio  and the tax expenditure's target ratio, along with an explanation
    13  for any difference between the two ratios;
    14    (j) an analysis of  whether  each  tax  expenditure  has  successfully
    15  achieved  the  purpose  for  which  the  tax expenditure was enacted and
    16  currently serves, including an analysis of the persons or entities  that
    17  are benefited by the tax expenditure;
    18    (k)  an  explanation  of  the cost benefit analysis formula applied to
    19  each tax expenditure; and
    20    (l) an explanation of each tax expenditure's target ratio, including a
    21  description of why the ratio reflects adequate levels of tax  relief  or
    22  job creation or job retention or investment in the state.
    23    §  3.  Subdivision 3 of section 181 of the executive law is renumbered
    24  subdivision 5 and two new subdivisions 3 and 4  are  added  to  read  as
    25  follows:
    26    3.  Cost benefit analysis formula. The governor shall develop for each
    27  tax expenditure a cost benefit analysis formula for determining the cost
    28  benefit analysis ratio.
    29    4. Cost benefit analysis target ratio. The  governor  shall  determine
    30  for each tax expenditure a cost benefit analysis target ratio.
    31    §  4. This act shall take effect on the first of January next succeed-
    32  ing the date on which it shall have become a law.
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